Like any financial decision, taking out a student loan has far-reaching consequences, so it’s wise to study the options.

A university diploma is a valuable asset that delivers lifelong dividends. Many students decide to take on student loans to help them pursue their degrees without creating an immediate economic burden.

Student loans come from either private sources or the federal government, and can be either subsidized or unsubsidized. Subsidized loans offer better terms and government assistance; unsubsidized loans require you to pay interest on the borrowed money, with interest accumulating over time. While lower loan payments may help you in the short term, the loan will take longer to pay off and will accrue significant interest.

Loans may be paid in several different ways: ahead of schedule, saving interest; over a 10-year standard or graduated plan; or on an income-based plan if you’re eligible. In some cases, loan payments may be delayed with a deferment or forbearance. But you don’t want to miss payments. Non-payment affects credit scores and unpaid loans can go into default. Student loans are not forgiven in case of bankruptcy.

Pew Research Center research shows that those with high-school diplomas earned 62 percent of the typical salary of college graduates. Among the two-thirds of young adults who borrowed money for college, about 86 percent said their degrees have been, or will be, worth it.

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